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India Expects U.S. to Withdraw Solar Complaint

Growth of India’s Solar Sector Likely Means More Business Opportunities for U.S. Companies.

Indian laborers work among solar panels at a solar power plant built on the site of vehicle manufacturer Maruti Suzuki at Manesar on the outskirts of New Delhi, June 3, 2014.
Photo:
Agence France-Presse/Getty Images

NEW DELHI—India expects the U.S. to withdraw its complaint at the World Trade Organization against local purchasing rules in its federal solar program, as the growth of the south Asian nation’s solar sector will likely mean more business opportunities for American companies, a senior government official said Tuesday.

A dispute settlement panel at the WTO is due to hear complaints made by the U.S. against India’s federal solar program on Feb. 3.

Under India’s program, known as Jawaharlal Nehru National Solar Mission, the country aims to raise solar power generation capacity to 100 gigawatts by 2022 from about 3 gigawatts now.

After coming to power in May, Indian Prime Minister
Narendra Modi’s
government raised the target under the solar program to 100 gigawatts from 20 gigawatts, as the country aims to boost the use of clean sources of energy and reduce dependence on fossil fuel such as coal to generate electricity. India imports three-quarters of its overall energy needs.

“The program has grown bigger and has created more opportunities for the American companies to take part and build solar projects in India,” the official added.

“The U.S. has an option to withdraw the complaint or keep it in cold storage,” the government official from India’s ministry of new and renewable energy told The Wall Street Journal. “Our position is clear and we would continue to defend it at the WTO.” U.S. authorities couldn't be immediately reached for comment.

The U.S. earlier said that India is unfairly restricting access to American suppliers as it moves ahead with the large-scale solar-power program through local purchasing rules. India says rules are limited to only a small portion of the program and are WTO compliant.

The news comes as U.S. President
Barack Obama
concludes a three-day trip to India, during which he said U.S. companies are eager to participate in India’s plan to boost the use of renewable energy, including solar.

The official said India in August dropped a plan to impose antidumping tariffs on solar cells imported from four countries, including the U.S. “That in itself was a boost for American companies,” he added.